These 3 Mortgage REITs Slide To New 12-Month Lows

The real estate investment trust (REIT) group that has investors most concerned about the Federal Reserve’s higher interest rates is rate-sensitive mortgage REITs (mREITs). This week, these three mREITs showed how deeply those concerns are felt as sellers overwhelmed buyers and each dropped to new 52-week lows.

Arlington Asset Investment Corp. AAIC is one of the smaller publicly traded real estate investment trusts with a market capitalization of $74.3 million. With headquarters in McClean, Virginia, the company focuses on agency mortgage-backed securities, mortgage servicing right-related assets, credit investments and single-family residential properties.

The most recently reported 12-month funds from operations (FFO) shows growth of 123.5%. The FFO record over the past five years comes in at negative 32.5%.

The REIT trades a 60% discount to its book value. The company does not pay a dividend.

Dipping to below the late March 2023 low, the price continues to trade significantly below the down-trending 50-day moving average (the blue line) and the 200-day moving average (the red line).

Arbor Realty Trust Inc. ABR has a market capitalization of  $1.87 billion. The Uniondale, New York-based company works with multifamily and commercial real estate projects. 

Funds from operations over the most recent 12 months reported dropped by 29.7%, but the past five-year FFO shows growth of 6.5%.

This REIT trades at 80% of book value and pays a 15.07% dividend.

The REIT has dipped below its October 2022 low, and the 50-day moving average has crossed below the 200-day moving average. Note that the relative strength indicator (RSI) below the price chart shows a positive divergence between the March and April lows.

Granite Point Mortgage Trust Inc. GPMT is a commercial real estate finance company that, according to its website, is focused on originating, investing in and managing “senior floating-rate commercial mortgage loans and other debt and debt-like commercial real estate investments.” 

The company has a market capitalization of $242.41 million. Now trading at 25% of its book value, Granite Point pays a dividend of 17.17%.

Granite Point’s price is hitting the new low well below the down-trending 50-day and 200-day moving averages. The relative strength indicator below the price chart appears to show a positive divergence between the two most recent lows.

Not investment advice. For educational purposes only.

Over the past five years, private market real estate investments have outperformed the publicly traded REIT market by about 50%. Check out Benzinga’s Real Estate Offering Screener to discover the latest passive real estate investments.

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